IBM Transitions Chip Division to Fabless Model

IBM's transition of its chip division to a fabless model marked a strategic shift in its semiconductor operations. By offloading manufacturing responsibilities to GlobalFoundries, IBM aimed to streamline its focus on semiconductor design while leveraging external manufacturing capabilities. This move was part of a broader trend in the technology industry where companies sought to reduce capital expenditures associated with maintaining fabrication facilities. The fabless model allows firms to allocate resources more efficiently, concentrating on innovation and design rather than the complexities of manufacturing. This transition also reflects the increasing importance of partnerships in the semiconductor industry, as companies like GlobalFoundries specialize in production, enabling design firms to remain agile and competitive in a rapidly evolving market.